Dairy Ingredients Market (2024-2031)
The Dairy Ingredients Market was valued at $63.94 billion in 2023. This market is expected to reach $93.22 billion by 2031 from an estimated $66.88 billion in 2024, at a CAGR of 4.9% during the forecast period 2024-2031. In terms of volume, the dairy Ingredients market is expected to reach 28,921,654
- Published
- Aug 2024
- Pages
- 426
- Format
- PDF + Excel
- Report ID
- MRFB - 104292
- Base year
- 2023
- 2023 · BASELINE
- $63.94B
- 2031
- $93.22B
- CAGR 2024–2031
- 4.9%
2023 baseline · 2024–2031 forecast at 4.9% CAGR · hover a bar for the value
Key highlights
By Source: In 2024, the Milk Segment to Dominate the Dairy Ingredients Market
By Type: In 2024, the Milk Powder Segment to Dominate the Dairy Ingredients Market
By Application: In 2024, the Food Segment to Dominate the Dairy Ingredients Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 426 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 4.9% |
| Market Size (Value) | USD 93.22 Billion by 2031 |
| Market Size (Volume) | 28,921,654 Tons by 2031 |
| Segments Covered | By Source · Milk · Whey · By Type · Milk Powder · Whole Milk Powder · Skim milk Powder · Fat Filled Milk Powder · Whey Protein · Whey Protein Concentrate · Whey Protein Isolate · Whey Protein Hydrolysate · Milk Protein · Milk Protein Concentrate · Milk Protein Isolate · Milk Protein Hydrolysates · Casein and Caseinates · Third-generation Dairy Ingredients · Lactoferrin · Lactoperoxidase · Alpha-lactalbumin · Lactose · Lactose Derivatives · Galactose · Lactulose · Lactitol · Lactosucrose · Other Lactose Derivates · Buttermilk Powder · Whey Permeate · By Application · Food · Bakery & Confectionery · Dairy Products · Infant Food · Other Food Applications · Beverages · Energy Drinks · Sports Drinks · Dairy-based Beverages · Other Beverage Applications · Nutritional Health Supplements · Animal Feed · Other Applications |
| Countries Covered | North America (U.S., Canada), Europe (Germany, Russia, U.K., Spain, France, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, Australia, Thailand, New Zealand, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Argentina, Rest of Latin America), and Middle East & Africa |
| Key Companies | Lactalis Group (France), Dairy Farmers of America, Inc. (U.S.), Fonterra Co-Operative Group Limited (New Zealand), Arla Foods amba (Denmark), Saputo Inc. (Canada), Royal FrieslandCampina N.V. (Netherlands), Savencia SA (France), Sodiaal International (France), Glanbia PLC (Ireland), Agropur Cooperative (Canada), Schreiber Foods Inc. (U.S.), Morinaga Milk Industry Co., Ltd. (Japan), AMCO Proteins (U.S.), KOMOS GROUP LLC (Russia), and Prolactal GmbH (Austria) |
Report overview
Segments covered: source, type, application. Regions: North America, Europe, Asia-Pacific, Latin America.
This market's growth is driven by the growing adoption of dairy ingredients in the food industry, increasing health and wellness trends, improvements in supply chain management, rising consumer awareness regarding nutritional foods, and increasing milk production. However, the demand for plant-based dairy alternatives and the increasing incidence of lactose intolerance restrain market growth.
In addition, technological advances in the dairy industry and emerging economies are expected to generate growth opportunities for market stakeholders. On the other hand, rising consumer awareness about the benefits of a vegan diet is a major challenge for the players operating in the dairy ingredients market. Furthermore, healthy snacking is a prominent trend in the dairy ingredients market.
Report infographic
Market dynamics
4 factors across 3 forcesRising Adoption of Dairy Ingredients in the Food Industry
Dairy components have become increasingly popular in the food industry due to their useful qualities, health advantages, rising consumer awareness, and demand for natural and clean-label products. In the food industry, dairy ingredients are essential as they provide food products with their flavor, texture, and nutritional content. They are becoming more common in functional foods and beverages, bakery products, confectionery items, snacks, sauces, dressings, and processed meats.
The demand for dairy ingredients is primarily driven by the global shift toward diets high in protein, particularly in products for weight control, meal replacement, and sports nutrition. Additionally, there is a rising market for functional foods and drinks that go beyond simple dietary intake to promote health. According to the functional foods sector, demand for products with immune-boosting and other natural and nutritious components is rising.
For instance, according to the International Food Information Council's (IFIC) 2022 Food and Health Survey, 52% of Americans adhered to a specified diet in 2022, up from 39% in 2021, 43% in 2020, and 38% in 2019. The primary reasons for adopting new diets were to protect long-term health (35%) and to lose weight (34%).
The growing demand for functional foods is expected to drive the dairy ingredients market. Milk is considered a complete food given that it contains key elements such as proteins, essential fatty acids, minerals, and lactose in equal amounts. Milk and milk products are acknowledged as essential components of a well-balanced and nutritious diet. Consumers are increasingly seeking clean-label food products with simple, natural ingredients. Dairy ingredients, often perceived as natural and wholesome, fit well into this trend.
Thus, the nutritional and functional benefits of dairy ingredients are increasing their adoption in the food industry, driving the growth of the dairy ingredients market.
Increasing Milk Production
In many emerging nations, urbanization is causing a revolution in cattle production. A trend toward more livestock-intensive diets centered around dairy, meat, and eggs is being driven by urbanization, population increase, economic expansion, and changes in consumer eating preferences. The availability of milk proteins and other dairy products, which are essential components of many food products, has improved as a result of increased milk output.
According to the Organization for Economic Cooperation and Development and the United Nations Food and Agriculture Organization (OECD-FAO) Agricultural Outlook 2022-2031 report, global milk production is expected to rise by 1.19% per year between 2021 and 2031, reaching 1,059.9 million tons in 2031 from 875.8 million tons in 2021. India and Pakistan are expected to contribute to more than half of the increase in global milk output over the next decade.
Higher milk production increases the supply of raw milk, which is the major source for extracting milk proteins and other critical dairy constituents. This abundant supply allows dairy processors to manufacture more dairy products and diversify their offers to suit rising consumer demand. Furthermore, as milk production increases, economies of scale can result in lower per-unit costs for dairy ingredient extraction and processing. This factor may make dairy ingredients more affordable for both F&B manufacturers and consumers, potentially increasing their use in a variety of products.
Hence, increasing milk production is boosting the dairy industry’s ability to meet the growing consumer demand for high-quality, functional, and nutritious ingredients.
Table of contents
11 chapters · 232 sections · 426 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Source | Milk | Whey |
| By Type | Milk Powder | Milk protein |
| By Application | Food | Nutritional health supplements |
By Source
- The Milk Segment to Dominate the Dairy Ingredients Market
- The milk segment is expected to account for a larger share of 78.9% of the dairy ingredients market.
- The large market share of this segment can be attributed to the wide range of applications and versatile, functional properties of milk.
- In addition, milk is a staple food due to its high protein and micronutrient content, further driving market growth.
- However, the whey segment is expected to record the highest CAGR of 5.4% during the forecast period.
- Its expanding use in sports nutrition products, functional foods, beverages, and dietary supplements, as well as advancements in dairy processing technology, is driving this segment’s growth.
By Type
- The Milk Powder Segment to Dominate the Dairy Ingredients Market
- The milk powder segment is expected to account for the largest share of 65.5%.
- This segment's large market share is attributed to its nutritional benefits, longer shelf life, wide application areas, and reduced transportation and storage costs.
- However, the milk protein segment is also estimated to register the highest CAGR of 6.1% during the forecast period.
- This growth is due to the high protein content and versatile, functional properties; milk protein is being increasingly adopted for sports nutrition and dietary supplements.
By Application
- The Food Segment to Dominate the Dairy Ingredients Market
- The food segment is expected to account for the largest share of 37.3% of the dairy ingredients market.
- This segment’s large market share is attributed to the rising consumption of functional food products, increasing awareness about the multi-functionality of dairy ingredients for processed food products, and growing demand for nutritional & fortifying food products.
- However, the nutritional health supplements segment is anticipated to register the highest CAGR of 5.4% during the forecast period.
- The heightened awareness regarding health and wellness, increasing recognition of the functional and nutritional benefits of dairy ingredients in health products, and innovative product development within the health supplements sector are contributing to the growth of this segment.
Geographic analysis
Asia-Pacific
Largest shareIn 2024, Asia-Pacific is expected to account for the largest share of 36.9% of the dairy ingredients market, followed by Europe and North America. The Asia-Pacific dairy ingredients market is estimated to be worth USD 24.66 billion in 2024. This region’s substantial market share is mainly attributed to the increasing demand for sports nutrition, growing demand for milk & milk-based products in the diet, increasing focus on manufacturing functional food products, changing food consumption preferences, and government policies & programs to support dairy production & processing industries. Moreover, Asia-Pacific is poised to register the highest CAGR of 5.3% during the forecast period. This regional market's growth is driven by the increasing demand for organic dairy ingredients and the rising infant population.
Competitive landscape
- July 2024
Lactalis established a new drying tower at its Walhorn Plant in Belgium. This plant processes 320 million liters of milk per year in three primary operations: UHT milk, UHT cream, and milk powder.
- July 2024
FrieslandCampina opened a new dairy factory at its subsidiary Frisian Flag Indonesia (FFI) in Cikarang, West Java, Indonesia, expanding its production capacity.
- April 2024
Arla Foods Ingredients acquired Volac (U.K.)'s Whey Nutrition division. This is an attempt by Arla Foods to increase its market share in the whey protein industry.
- June 2023
Prolactal launched Goat MPC 80 and Goatmilk Protein Powder 60 for infant formula, food, and beverage applications.
- June 2022
Fonterra launched Pro-Optima, a grade A functional Whey Protein Concentrate (WPC). This WPC has several applications in cultured goods, including sipping yogurt, spoon-able yogurt, yogurt mousses, and nutritious yogurt bars.
- Lactalis Group · France
- Dairy Farmers of America, Inc. (U.S.)
- Fonterra Co-Operative Group Limited · New Zealand
- Arla Foods amba · Denmark
- Saputo Inc. · Canada
- Royal FrieslandCampina N.V. · Netherlands
- Savencia SA · France
- Sodiaal International · France
- Glanbia PLC · Ireland
- Agropur Cooperative · Canada
- Schreiber Foods Inc. (U.S.)
- Morinaga Milk Industry Co., Ltd. · Japan
- AMCO Proteins (U.S.)
- KOMOS GROUP LLC · Russia
- Prolactal GmbH · Austria
Frequently asked questions
Dairy ingredients are defined as components derived from milk and whey. They are high in nutritional benefits, providing proteins, amino acids, vitamins, and minerals. Ingredients derived from milk and whey include milk powder, whey protein, milk protein, casein and caseinates, third-generation dairy ingredients, lactose, lactose derivatives, buttermilk powder, and whey permeate. These ingredients have applications in food, beverages, nutritional health supplements, animal feed, and other industries.
This dairy ingredient market report provides detailed market insights and market size & forecasts for dairy ingredients in terms of value & volume by type and geography and in terms of value by source & application. Each segment provides the market size & forecast for five key geographies (North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa) along with the key countries.
Cite this report
Meticulous Research. (2024). Dairy Ingredients Market - Global Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MRFB - 104292). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/dairy-ingredients-market-4994